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Managing Municipal Solid Waste with low citizen involvement: the case of Hong Kong

Author

Listed:
  • Julie Metta

    (Research Group Sustainable Development HIVA, & Cedon, Center of Economics and Corporate Sustainability, Faculty of Economics and Business KU Leuven, Leuven, Belgium)

  • Coline Metta-Versmessen

    (LEDa Paris Dauphine University, Chaire Economie du Climat \& EDF, Paris, France)

  • Valeria Alvarado

    (Hong Kong Polytechnic University, Hong Kong \& Sustainability Specialist, M Moser Associates, Hong Kong)

Abstract

While the waste sector has significant decarbonization potential, deploying this potential is difficult in the absence of citizen participation and involvement. In this paper the political management of the waste sector is studied for the case of Hong Kong. Using Weitzman s theorem and extensions, both marginal abatement and damage curves are built to analyse which policy would be the most suitable. From our analysis, we first show that involving citizens in waste reduction and sorting is the main issue for waste management in Hong Kong. Second, we derive that the first best scenario to regulate waste in this context would be through a quantity-based control system. We then detail how this Waste Permit Trading System should be developed to regulate the waste amount in this region. We characterize a system consisting of both landfill permits and recycling credits. We determine the optimal number of permits and credits for the different agents as well as a potential market design that allows for a future linking with the Chinese National Emission Trading System.

Suggested Citation

  • Julie Metta & Coline Metta-Versmessen & Valeria Alvarado, 2024. "Managing Municipal Solid Waste with low citizen involvement: the case of Hong Kong," Working Papers 2024.03, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2024.03
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    pollution regulation; quantity-based scheme; carbon market; permit allocation; recycling;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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